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  • Tried and Tested Debt Collection Strategies

    Tried and Tested Debt Collection Strategies

    More than 50% of all startups fail in first few years of doing business. Inability to collect debts is one of the major reasons that leads startups to bankruptcy, because for business to function well, companies require constant money flow.

    Since debt collection is such a hard and an unpleasant experience I’ve listed some of the most effective strategies that can help entrepreneurs to recover their debts and make their business lucrative again.

    Determining Payment Policy

    Each contract made for the purpose of selling goods or services should contain payment policy that determines schedules, ways and amounts customers are obliged to pay to goods or services providers. Different payment policies might include measures that should motivate customers to pay their debts on time. These special measures might include:

    • Late-payment fees– fees that are added to the debt amount when debtor doesn’t settle the debt in agreed time. Regular late-payment fee range from 1% to 3% of the whole debt.
    • Advance payment– companies can ask their customers to pay up to 50% of their debt up front.
    • Interest– interests are added to the debt amount after customers fail to pay their debt in agreed time. Debt interests are regulated by federal and state laws, which means that companies first need to consult the law before adding that article to the contract.
    • Due dates– contract and each bill that’s being sent to customer needs to contain due dates, after which late-payment fees and interests are being added to the debt amount.

    Staying in Contact

    One of the main strategies to make customers paid their debt is by maintaining constant contact with them. Debtors should be contacted by several different ways:

    • Reminder bills– these notes remind customers that their debt is past due date.
    • Phone calls– this way customers should try to get a verbal agreement and a new due date, until the debt is going to be settled. When calling debtors, company officials should avoid phone harassment, they should also talk in civil tone, identify themselves, and state the reason for calling and their desire to keep positive relationship with the customer.
    • Demand letters and e mails– these letters should have a more demanding tone (but shouldn’t sound threatening) and should present next steps company will do to collect the debt.

    Negotiation

    Secret of successful debt collection is in understanding debtor’s situation and that’s why negotiations with debtors are very useful. Here company officials can offer discounts and longer deadlines. Although most people think that this way the company is losing its money, it is much smarter to make these exemptions and never deal with debtor again, then to continue with debt collecting routine and settle in court, which also comes with its share of costs and lots of uncertainty.

    During negotiations company officials also need to inspect the possibility that the debtor will declare bankruptcy, which can cause plenty of legal troubles and requires hiring a lawyer or debt collecting agency.

    Hire Professional Debt Collectors

    This is probably the most certain and the easiest way to collect debts. Sure agency will take its share of the money, but this will cost much less than a court settlement or some other similar arrangement. Sometimes choosing a debt recovery agency is not that easy. When doing that, company management needs to check these things:

    • Whether the agency is licensed;
    • Whether it is bonded and insured;
    • How big are the fees and in which way do they charge them;
    • Whether agency is offering debt portfolio screening;

    All these determine the agenci’es profile, and for most debts, agencies charge fees after the settlement, which in some cases means that company can get their share of the money right away.

    The only strategy we didn’t mention in previous paragraphs is the customer and business partner screening, which tells the company how responsible they are when it comes to debt payments. This can prevent many invoices turning into bad debt and it is especially important for B2B deals. If even with these precaution measures you end up with unpaid debts, the above mentioned strategies will make collection much more easier and less stressful.

  • Financial Tips for Post-Graduate Life & Beyond

    Financial Tips for Post-Graduate Life & Beyond

    In college, whether you were on the straight and narrow four-year plan or the winding and sidetracked six or seven-year plan, there’s a sense of accomplishment and relief when the end is in sight and a diploma is in your hands. Your financial future, however, may be daunting and full of expectations. As long as you can remember, you were told that as long as you work hard, you’ll get ahead in life.

    Unfortunately, a diploma doesn’t automatically guarantee a planned out future and financial security as soon as you graduate. If you have a dream job lined up as soon as you exit your university, consider yourself lucky. According to After College, a job site for new college graduates, only about 14% of college graduates had “real” jobs lined up right after graduation in 2015. While you’re looking for the right job, here are some personal finance tips to keep you afloat:

    • Create a Budget: Maybe you thought your days of scrimping, saving, and eating ramen were behind you. Even if you have a decent paying job after college, it’s important to create a budget and learn to stick to it. When creating a budget, figure in all your expenses (even the ones that aren’t a constant), as it’s important to know how much money you really have to work with. Once you have figured out your monthly expenses, such as rent, student loans, food, car payments, and “fun” stuff, you may feel underwhelmed by the amount of money you are actually making.
    • Stick To Your Budget: If you want to have splurges throughout the year, such as concerts, dinner with old college roommates, or gifts around the holidays, you will have to stick to your budget. If it means going out to eat less and learning how to become a better cook and a coupon-clipping shopper, go for it. It’s a good idea to revisit your budget every couple of months to make sure you’re being financially responsible.
    • Avoid Debt, Try to Be Positive: Life right after college can be a bit “dark”, especially if you feel like you are limiting yourself from having fun, but as an educated adult it’s up to you to be creative and enjoy what you want in life. Don’t get go on vacation with friends? Host a backyard BBQ potluck and invite new friends from work and old friends from college.

    It may be tempting to open another credit card if you’re financially strapped, but unless you can make the monthly payments on time, don’t do it. Make the best of your life right now, it’ll get easier if you’re wise with your personal finances.

    Your Job as a College Graduate

    Employment after college is crucial. Even if you’re completely burned out and would like to go on some sort of a “soul searching” journey, now is not the time. If you’re not finding the “dream job”, don’t worry, a job doesn’t need to be forever. Be open to all kinds of jobs and consider the ones that offer full-time, reasonable pay, and benefits.

    You can always pay attention to the job market while already employed, but if you just wait for the right job to come to you, it’s likely your debt will be overwhelming. Another important thing to remember is to treat each job like a “real job”. While it may just be a stepping stone in your life, it’s an important one.

    Placing Loved Ones in a Retirement Home

    Once your career has taken off and you are successfully managing your personal finance, paying off student debt, and making enough to purchase your own home, a few decades can fly by quickly. At the peak of your financial success, you may find that your aging parents are ready to move into a retirement home. Here are some things to consider before helping your parents take this big step:

    • Can Your Parents Afford to Live in a Retirement Home?: Even if your finances are secure and growing over time, your parents may have little to live on. Personal finances can change for various reasons, but many elderly individuals face issues with pension or Social Security. Before you help your parents make a decision, take a look at their finances.
    • Consider Your Options: If your aging loved ones are able to get around in their home, maybe they could benefit from a live-in caregiver or one who stops over on a daily basis. This may be a cheaper and temporary alternative, but may buy you some more time as you research the best retirement home.
    • Will You Have to Chip In? If your mother or father would benefit from living in a retirement or nursing home, will you need to chip in and pay for the difference not covered by Medicaid? Do your research and talk with homes. If your parents have a limited income or health issues, they may be eligible for assistance. Look at all your resources and talk with a financial planner if you’re running into financial hurdles.
  • 3 Advertising Strategies to Match with Ad Server Solutions

    3 Advertising Strategies to Match with Ad Server Solutions

    The present age belongs to digital media, which more advertisers are using to put their messages across. Service providers now have an absolutely new source to generate their revenues. Ad servers are playing a pivotal role in this budding media market and offering great solutions to their subscribers. As they are positioned uniquely between advertisers and customers, ad server solutions can use subscriber and network intelligence. They help advertisers deliver specific messages. Hence, targeted messages are delivered more efficiently. Ad servers also take care of precise measurements of ad performance and preserve customer privacy all along.

    Basic network requirements for ad server solutions

    To utilize the complete potential of targeted advertising, ad server solutions need to follow critical functions:

    • Identify and investigate – The network should be capable of collecting viewer information from a range of databases. This information can help advertisers reach specific target markets. The data includes demographics, locations, preferences, usage patterns, and also the total dynamics of the advertising messages delivered. Plus, publishers need accurate measurements to track ad-campaign effectiveness and verify audience response.
    • Amass and evaluate – The data amassed has to be converted into useful marketing knowledge. Ad servers need to evaluate their key target markets as a whole, while keeping individual customer anonymity secure. This evaluation helps provide the specified inventory and ad space for an advertiser and sell respectively. Hence, ad servers will increase overall returns.
    • Activate and interact – Once the data is added with a proper system and organizational structure, the system will be able to deliver interactive ads to customers. The delivery will be both, at the precise time and personalized for the concerned customer.

    However, installing an updated ad server solution and meeting its basic requirements is not enough. You have to know how far you can go with creative brand marketing. With more businesses shifting their focus to the web, adapting to newer methods and adaptive strategies is essential to stand out in the crowd.

    With proper ad server solutions, advertisers are trying to use new, dynamic,and creative methods of advertising. Here, dynamic advertisements adapt to the particular wants and needs of people viewing the ads. The information can be extracted using customer behavior, context, and location. The aim is to offer a personalized experience.

     

    How to create dynamic creative ads?

    1. Use images of high quality

    Although image is not everything in advertising, it is significant in catching the attention of prospective customersthe first time. Use of dynamic, attractive, and well photographed images can help in easy delivery of messages to prospective customers.

    1. Keep a constant size

    Be consistent with your image size, as it appeals only visually at first. While using dynamic advertising, always provide a consistent image and content size, even if there are different images or words being used.

    1. Attract with an interesting call-to-action

    Visual impact is crucial in your advertisement, but equally significant is your call-to-action button. This usually prompts customers into conversion. Make an interesting and engaging ad copy so that the customersare drawn to find out more.

    There are, of course, many more options in dynamic creativesthat can be taken care of. This delivers a better market for the brand you are marketing. Of course, most of the basic features are taken care of by the ad server solutions, which have become very smart and customer interactive.

    Author Bio:

    Preethivagadia is currently a Senior Business architect with the Service operations practice at a well-known IT Industry in Bangalore. She has worked in several process improvement projects involving multi-national teams for global customers. She has over 8 years of experience in AdServer Solutions and has executed many projects in Logistics Integration, Logistics management,  Warranty software, Reverse logistics,  and Programmatic Solutions.

  • 3 Reasons Mortgage Applications Get Rejected

    3 Reasons Mortgage Applications Get Rejected

    Getting home loans are very tough these days rather than what it was a few years back. When credit crunch happened, banks made their credit benchmarks really stiff. Lenders today accept only 55% of the mortgage applications duly submitted, Mortgage Bankers Association (MBA) reports.

    The FDIC data says, the U.S. banks experienced an all-time low of 7.4% in 2009. This is the sharpest fall since 1942 and the banks haven’t thought of easing the lending standards. So, families thinking of refinancing their current homes or taking loans to buy a house should collect all the information that will ensure positive response from the lenders.

    3 reasons out of many for people get turned down while asking for mortgage and how to get over these obstacles:

    • Improper documentation of income

    Most people think documenting their income is pretty simple. That’s where they are mistaken. Even the ones with high FICO scores might not qualify from a mortgage bank lending business. Even if you have scored some 700 points in FICO and carry a huge amount of cash on in your bank, you would need to prove your income to qualify for the mortgage.

    Other attributes related to income that can hinder your mortgage loan application are: changing jobs frequently, employment gaps, not working continuously for two or more years, or shifting from salary based work to work on commission. In short, if your document history cannot be properly tracked, mortgage bank lending will become a difficult possibility.

    Both credit scores and cash reserves matter in case of loan sanctions. However, the present scenario has banks and private lending enterprises carefully looking into all the factors- the amount asked for lending by the applicant, loan-to-value ratio for the loan asked, what your debt to equity values are, and if your tax returns shows if you can manage the taxes in case situation gets adverse.

    • Strong compensation factors missing

    In case you find some problem with your application or you might be on the borderline of qualifying as your debt ratio is high, you could make your application strong with compensating factors. Compensating factor is one lingo of the mortgage industry. This shows the positive aspects that your mortgage application has to side-line other negativities.

    The compensating factors can include:

    • More than 20% of down payment
    • Less than 80% of loan-to-value ratio
    • Having cash reserves in huge amounts for 12 months and more
    • Credit score above 740

    If borrowers come with improper applications (not polished), if they cannot substantiate with a strong compensating factor will mean turning down the mortgage loan request.

    • Picking wrong type of property

    There are certain properties in mortgage lending most lenders are scared to finance. Two of them are investment properties and second homes. This, of course, does not mean funding is not possible for these properties. The only factor is carrying stringent terms and conditions like higher amount of down payments in cash and have higher cash reserves.

    Buying condominiums, especially in newly developed localities could be tricky. The buyer might assume getting a good bargain by taking a condo that is under construction. The warning is: most of the lenders, whether it’s banks or private lenders won’t sanction loan until more than 70% of these condos have been sold. To add to the misery, lenders do not approve loans to condos that do not have FHA approval.

    There are many other reasons why mortgage bank lenders turn down most mortgage applications. However, if you have taken care about the above 3, you have at least started to find some ways to make your loan plans successful.

    Author Bio:

    Preethi vagadia is a business architect worked in Mortgage and Finance software department with top notch companies and has over 8 years of experience in Mortgage Lending Technology,Mortgage Loan Servicing Software, mortgage management software, mortgage loan software etc.  She has also worked in several process improvement projects involving multi-national teams for global customers in warranty management and mortgage.

  • Smart Ways to Teach Children about Money

    Smart Ways to Teach Children about Money

    As soon as they can count, start introducing your kids to money. Start by letting them see and feel all the various notes and coins. And, as they get older, start raising their financial awareness step by step. Explain to them the concepts behind money through everyday activities, and get them into saving and spending money by giving them pocket change. This way, your child will get to know the basic clockwork of the finance world, which will also affect their development. And, ultimately, you will have raised a smart individual, who knows how to handle money responsibly.

    Money Doesn’t Grow on Trees 2

    Include your children in your daily financial activity. Be it a trip to the ATM or the bank, you will want to teach your children how money is obtained. They consider that invisible money, so explain how they don’t hand out money just like that. Talk shop, and explain how money is the reward for all the hard work and perseverance you put into your work. They will appreciate you and your job more, and will get to know how the world functions.

    Give Them a Run for Their Money

    Start giving your kids an allowance. There is no better way of teaching kids the value of money than by letting them taste it for themselves. Kids will come to realize how everything costs money, and if you want to get something you have to earn it. Furthermore, you can get them to do chores. They will help around the house, and learn the value of an honest day’s work. More importantly, this will help build their character, make them more self-reliant, enterprising, and hard working.

    Save up for a Rainy Day 

    Cute little girl plays with money, isolated over white
    Cute little girl plays with money, isolated over white

     

    You should teach your kids to save money. A notebook can be a perfect way to store receipts, and manage their budget. This will allow them to always stay on top of their costs. And, for storing all that money, provide your kids with a piggy bank. They may not save up most of their allowance there, but it is certainly great to teach them the value that spare change has in the long run. When your kids get old enough, you can open up their first savings account.  You can also use cool math games to teach them about interest rates and how it affects their savings. They will feel more grown up, and get a boost to their self-confidence at the same time.

    Don’t Spend It All at Once

    Teach your children to spend their money wisely. Let them make a wish list and set their priorities. They will get a sense of what they want, and have 5a goal set. Incorporate the concept of waiting it out. Fun math games will let them calculate how long it will take, and they will stay focused. This will ensure that they never spend it all in one place, and not as soon as they receive it. And, with important items always on their mind, they will learn to never waste money. Also, with all the effort they put into reaching their goal, they will appreciate the things they buy that much more.

    The Right Price

    Ask your children to help you with the shopping. You can teach them how to make a proper shopping list, and how to find the best buy. They will learn how brands affect price, and how they can save money by going for the alternative. Also, they will get a sense of when to consider quality over price, and how quantity is sometimes the cheaper way to shop. Moreover, a supermarket is a great place to add a bit of skepticism to your children about brands, ads, and supermarket tricks. Explain the goals of the supermarket and the product manufacturers, and how it’s not the customer they always have on their mind.

    In the end, it is important to remember that kids start out with no concept of money. And, even though we all wish it could stay that way, the world doesn’t work like that. However, teaching your children early on will prepare them for the world ahead. By introducing children to their own money, and including them in everyday activities, they will become smart financially savvy individuals with a healthy attitude towards money.

    About author:

    Tracey Clayton is a full time mom of three girls. Her motto is: “Live the life you love, love the life you live.” Find her on Facebook.

  • Feeling the Squeeze: 5 Money Strategies for the Sandwich Generation

    Feeling the Squeeze: 5 Money Strategies for the Sandwich Generation

    Life as it is can be a little hectic. Working full time, taking care of your children and still finding the time to treat yourself can be a chore. For some, it can get even stressful if they have to support their aging parents as well.

    If you are busy raising kids and caring for an aging parent, then you belong in the “Sandwich Generation.” According to a survey by BMO Nesbitt Burns, cited by Huffingtonpost.ca,  more than half of Canadians aged between 45 and 64 are feeling squeezed by the needs of their children, aging parents or both.

    No matter how you slice it, balancing between your family’s needs and your aging parents’ needs can be a burden. Carefully planning a smart money strategy can help you take some of the pressure off.

    Without further ado, here are five financial strategies to help you feel less “sandwiched.”

    1. Save for Your Children’s Education

    If you are a sandwich generation parent, stretching your savings to provide higher education to your children can be extremely difficult. Although you might think there is still enough time to start saving, most parents don’t realize the severity of this problem until it is too late.

    Fortunately, there is a solution. Registered Education Savings Plan, or RESP, is a savings plan sponsored by the Canadian government that encourages parents or other siblings to invest in their children’s post-secondary education. One of the main benefits of RESP is that the government can offer grants to eligible contributions.

    Here’s how this plan works: Imagine you open an RESP account for your newborn baby and contribute $1000 into the account. Your provider will send the account and other information to the government for grant approval. If the grant is approved, then the government adds 20% of your annual contribution, up to $500 per year. Families with lower incomes receive a higher grant from the government.

    When your children enroll to college, they can start taking money from the account, tax-free.

    1. Protect Your Parents in a Smart Way

    Understanding your parents’ needs is the first step to protect and provide for them in a smart way. Although discussing finances with them can be difficult, helping them see that this is the best way for you and them is crucial.

    Your parents might take for granted their capacity to self-function since simple tasks seem easy and automatic. But, when they lose their ability to self-function on a daily basis, they put a lot of stress on you. Long term care insurance is a smart way to protect your aging parents and to reduce future costs. With long term care insurance you will receive at-home nursing for your parents. Also, the insurance will provide for their basic needs, such as feeding, dressing or cleaning.

    1. Protect Your Income

    Protecting your income is a smart money strategy, especially if you have multiple generations counting on you. There are different ways you can protect your income and your loved ones, such as life insurance, disability insurance or critical illness protection.

    With almost half of Canadians being diagnosed with some form of cancer throughout their life and with the ever growing rates of heart disease, protecting your income is a wise decision if such a scenario would unfold.

    1. Look for Ways to Increase Your Monthly Cash Flow

    For many, caring for both, children and aging parents can be stressful. That’s why it is a smart idea to look for new ways to increase your monthly cash flow. Look for passive income opportunities, such as selling old stuff on Amazon and eBay or affiliate marketing. Or you could stretch your mortgage’s amortization for a while to lower your payments. Although this is not a good idea usually, but in the short run can help you balance your finances while providing for your family.

    1. Care for Your Future Needs

    You don’t have to be sandwiched to start planning for your future needs. Early planning can go a long way, and can take some of the financial and emotional pressure off your shoulders. Once you’ve got the basic costs of living covered, start putting money aside for your retirement or for unexpected events. Investing in a retirement account can save you takes and will keep your money from being easily spent. Not to mention that you will be able to cover your own costs of aging.

    Caring for both, your children and your elderly relatives can sometimes feel like a burden. But, with the right financial planning, you can ease the financial and emotional strain.

    Have you implemented any of the strategies above? What other tips do you have for the Sandwich Generation? Share your thoughts in the comments below.

    Author Bio: Ben Rogers, Web Content Manager at Assiniboine Credit Union.